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Longrunonomics vs. Shortrunonomics

Harvard Business Review

Real business cycle theory continued to prosper, developing an increasing stranglehold over the professional journals. Behavioral finance stayed on the margins. It doesn't offer much hope, though, for clear guidelines to macroeconomic decisionmaking. And nothing happened.

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Is Economics Ready for a New Model?

Harvard Business Review

and Europe, though (and Japan's long struggles were seen as the product of peculiarly Japanese economic traits). The conviction spread that, thanks in part to financial innovation, the world's developed economies had become more resilient even as financial markets became more volatile.